MANILA - Real property tax in the capital city will be reduced by 20 percent next year, after Mayor Isko Moreno signed Thursday an ordinance that sought to provide relief to residents.
Real property taxes will be further reduced by 10 percent in 2021 and by another 10 percent in 2022, Moreno said.
The capital is expected to lose P1 billion next year when City Ordinance No. 8567 takes effect, but this could be offset by making tax collection more efficient, he said.
"Maliliit na lote na pagaari ng ordinaryong taga-lungsod o commercial complex, lahat pantay-pantay. Makararamdam kayo ng konting kagaangan," he said.
(From small lots owned by ordinary residents to commercial complex, the tax cut is for everyone. You can enjoy some relief.)
Former Manila Mayor Joseph “Erap” Estrada raised the capital's real estate tax by 300 percent to settle the city's P5.5 billion debt in 2013.
Estrada cancelled a 2017 tax hike in the city, after the capital supposedly paid its debts, but the former Philippine president ended his mayoral term earlier this year with P4.4 billion in debts, according to the Commission on Audit.
Moreno earlier signed a separate ordinance that implemented a tax amnesty program to entice more Manila residents and businesses to pay their dues.